Northwest Airlines
NWA today announced further capacity reductions for the fourth quarter of 2008 in response to the high cost of fuel.
At the Merrill Lynch Global Transportation Conference, Northwest CEO Doug Steenland plans to detail how Northwest Airlines is responding to the industry’s oil shock. He will also explain to industry analysts why -- with high fuel prices being the industry’s greatest threat since 9/11 – the planned merger with Delta Air Lines, and resulting synergy benefits, make the case for the merger stronger than ever.
Steenland said, “In response to these extraordinary fuel costs, we are taking prudent actions to reduce our capacity and right-size the airline. This will allow us to better match our capacity to customer demand as airfares, by necessity, must increase.”
4th Quarter ’08 Capacity Reductions
Northwest will reduce its system mainline capacity (domestic and international) in the fourth quarter of 2008 by 8.5% - 9.5% versus the fourth quarter of 2007. This includes the reductions previously announced in April.
Steenland added, “No domestic station closures are planned as a result of these capacity reductions. Instead, we will pare unprofitable flying while maintaining the scope and presence of our network.”
The airline has not yet finalized the specific employee impacts related to the reduced flying. However, for the resulting headcount reductions, NWA will first look to voluntary separation programs such as early-outs.